Top News

Gold to drop to $1,625.20/oz

SINGAPORE: Spot gold will drop to $1,625.20 per ounce as it failed a resistance at $1,662 again. The resistance is the
Published Updated

The resistance is the 50 percent Fibonacci retracement on the fall from $1,802.60 to $1,521.94, and may have forced the wave "5" of a small five-wave cycle to peak.

The completion of the cycle has also been indicated by a bearish divergence on the MACD indicator.

An immediate target will be $1,625.20, a presumed wave "4", and a drop below it will extend to $1,612, the 38.2 percent Fibonacci retracement on the rise from $1,521.94 to $1,667.41.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2012